103.9169/1–945: Telegram

The Acting Secretary of State to the Ambassador in Bolivia ( Thurston )

57. Your no. 40 January 9, 11 a.m. The Department agrees that there is an obligation on the part of this Government not to penalize other countries for cooperating in the supply of strategic materials by abruptly changing the terms of its purchases in such fashion as will react adversely upon their economies. However, the Department understands from your telegram no. 38 of January 928 that, if this Government now discontinues purchases of QS29 bark, the Bolivian producers will be able to sell that bark to friendly neighboring countries at prices equal to or better than are now being paid. In such case, the Bolivian economy would not be injured by our discontinuance of these purchases.

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Your attention is invited to the confidential telegram30 on this subject from Crowley, Gardiner and McDermott31 for Wynn and Lucia32 that is going out simultaneously with this one. It is based on the assumption that the proposed action will not injure the Bolivian economy or penalize Bolivia for its cooperation in supplying materials needed for the war effort. If you believe this assumption to be wrong, or have any other reason for doing so, you should instruct the FEA representative to defer any action indicated by the telegram pending the receipt of further instructions.

In any case, please report fully on the situation as you see it for the guidance of the Department.

  1. Not printed.
  2. Quinine sulphate.
  3. Telegram 58, not printed.
  4. P. A. McDermott of the Foreign Economic Administration.
  5. FEA representatives in La Paz.